Summary Of "The Economic System" By Armando Fastman: UNIVERSITY SUMMARIES

By MAURICIO ENRIQUE FAU

We have summarized the essential of this book by the author.

THE ECONOMIC SYSTEM

1. Economic activity. Measurement

The problem of value is to determine a measure of the exchanges.

TYPES OF VALUE

• USE VALUE: is the ability of a merchandise to satisfy a need
• EXCHANGE VALUE: ability of a commodity to be exchanged for others, because it has a use value, is the product of human labor and is produced for the market

Human labor determines the magnitude of the product's value. This product is expressed in a monetary sign and is the PRICE.
Goods have different prices but in the long run the differences between value and price tend to disappear.

• Language: English
• Publisher: BOOKS AND SUMMARIES BY MAURICIO FAU
• Release date: Dec 30, 2021
• ISBN: 9798201384944

MAURICIO ENRIQUE FAU

Mauricio Enrique Fau nació en Buenos Aires en 1965. Se recibió de Licenciado en Ciencia Política en la Universidad de Buenos Aires. Cursó también Derecho en la UBA y Periodismo en la Universidad de Morón. Realizó estudios en FLACSO Argentina. Docente de la UBA y AUTOR DE MÁS DE 3.000 RESÚMENES de Psicología, Sociología, Ciencia Política, Antropología, Derecho, Historia, Epistemología, Lógica, Filosofía, Economía, Semiología, Educación y demás disciplinas de las Ciencias Sociales. Desde 2005 dirige La Bisagra Editorial, especializada en técnicas de estudio y materiales que facilitan la transición desde la escuela secundaria a la universidad. Por intermedio de La Bisagra publicó 38 libros. Participa en diversas ferias del libro, entre ellas la Feria Internacional del Libro de Buenos Aires y la FIL Guadalajara.

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Summary Of The Economic System By Armando Fastman

UNIVERSITY SUMMARIES

MAURICIO ENRIQUE FAU

Published by BOOKS AND SUMMARIES BY MAURICIO FAU, 2021.

While every precaution has been taken in the preparation of this book, the publisher assumes no responsibility for errors or omissions, or for damages resulting from the use of the information contained herein.

SUMMARY OF THE ECONOMIC SYSTEM BY ARMANDO FASTMAN

First edition. December 30, 2021.

Copyright © 2021 MAURICIO ENRIQUE FAU.

ISBN: 979-8201384944

Written by MAURICIO ENRIQUE FAU.

Table of Contents

Title Page

Copyright Page

Fastman, Armando

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About the Author

About the Publisher

Fastman, Armando

We have summarized the essential of this book by the author.

THE ECONOMIC SYSTEM

1. Economic activity. Measurement

The problem of value is to determine a measure of the exchanges.

TYPES OF VALUE

• USE VALUE: is the ability of a merchandise to satisfy a need

• EXCHANGE VALUE: ability of a commodity to be exchanged for others, because it has a use value, is the product of human labor and is produced for the market

Human labor determines the magnitude of the product's value. This product is expressed in a monetary sign and is the PRICE.

Goods have different prices but in the long run the differences between value and price tend to disappear.

A digression: goods and services

GOODS are material objects; instead the SERVICES are intangible.

PRIVATE GOODS are for exclusive use by the consumer. The other consumers are excluded from its use value. The price is the indicator of the sale and purchase.

PREFERRED GOODS are also for exclusive use, but no one is excluded from their use. Ex: build a dam with taxes.

PUBLIC GOODS are of non-exclusive use. Ex: justice.

The behavior of supply and demand

ELASTICITY determines how a dependent variable reacts when an independent variable is modified.

In economics, it explains what happens to the quantities demanded of a good by consumers, when their income changes, or the price of the good or other goods changes.

WHEN THE VARIATION IN THE QUANTITY DEMANDED IS OF GREATER MAGNITUDE THAN THE VARIATION IN THE INCOME OF THE CONSUMER OR THE PRICE OF THE GOOD, IT IS SAID THAT THE DEMAND IS ELASTIC

WHEN THE VARIATION IN THE QUANTITY DEMANDED IS LESS, THE DEMAND IS SAYED TO BE INELASTIC

When the variation is equal, the demand is unitary.

When the goods are normal, there is a direct relationship of the same sign between the consumer's income and the quantity demanded of the good.

A GOOD IS COMPLEMENTARY WHEN THE RELATIONSHIP BETWEEN PRICE AND QUANTITY IS REVERSE. A GOOD IS SUBSTITUTE WHEN THE RELATIONSHIP BETWEEN PRICE AND QUANTITY IS DIRECT. THESE TYPES OF RELATIONSHIPS ARE CALLED CROSS ELASTICITIES

On the supply side, the variables that condition entrepreneurs are: changes in the prices of productive factors (wages, income), evolution of profits and changes in the technology used by the company.

INVESTMENT IS THE PROCESS BY WHICH THE EMPLOYER ORGANIZES HIMSELF TO MAXIMIZE THEIR PROFITS

Social appreciation

The inputs are valued through the